Friday, January 14, 2011

Executive Vice Chairman Dumps 100 million Shares Of Metronic

Read the following news article on Business Times:

  • Director sells 100m Metronic shares

    By Francis Fernandez Published: 2011/01/14

    Metronic's executive vice chairman Datuk Gani Abd Yusof had sold 15.75 per cent of the company at an average selling price of 6.63 sen apiece.

    A company director sold 100 million shares in the open market on Wednesday without prior notification to Bursa Malaysia, prompting the shares to be suspended midway in the first session of trading yesterday.

    Metronic Global Bhd's (0043)shares were suspended from 11.17am until 2.30pm to allow the company to clarify the situation.

    On Wednesday, dealers were surprised on the unusual amount of Metronic shares traded.

    A total of 173 million shares were traded in the open market on Wednesday, a steep volume for the company, whose average six-month daily volume was just around 2.77 million shares a day.

    Metronic informed the stock exchange yesterday that its executive vice chairman Datuk Gani Abd Yusof had sold 100 million shares, or 15.75 per cent of the company, at an average selling price of 6.63 sen apiece.

    "Pursuant to paragraph 14.09 of the listing requirements of Bursa Securities for dealing in securities, the company has received notification dated January 13 from Abd Gani of his dealing in Metronic securities outside the closed period," the company said in a statement to Bursa Malaysia yesterday.

    Under paragraph 14.02b of the listing requirements, closed period means a period of 30 days before the company makes an announcement on its finances such as issuing annual or quartertly financial reports.

    Metronic has suffered losses for the past two financial years. For the year ended December 31 2009, it posted a net loss of RM2.09 million, while in the year before, its net loss stood at RM7.26 million.

    For the nine months ended September 30 2010, Metronic's net loss stood at RM4.77 million.

    Paragraph 14.09, meanwhile, states that if a director trades in the shares during the close period, the director must then, within three market days after the dealing has occured, give notice of the dealing in writing to the company secretary.

    Despite the sale, Abd Gani still owns 61.66 million shares, or close to 9.8 per cent of Metronic.

    Abd Gani, when contacted by Business Times for comments on the sale, said he was busy in a meeting.

    He also did not return text messages seeking his comments on the share sale.

    Abd Gani started building his business base with Peremba Bhd, a company with a legendary reputation for being the training ground for some of Malaysia's top corporate highfliers in the 1980s and 1990s, including the likes of Tan Sri Halim Saad and Tan Sri Tajuddin Ramli.

    Abd Gani re-emerged in the limelight last year when he was appointed as a director in Kenmark Industrial Co Bhd after its Taiwanese controlling stakeholder James Hwang Ding Kuo abruptly left the country.

Here is how Metronic is doing since listing.

And as mentioned in the article, Metronic's financial history is rather poor!
  • Metronic has suffered losses for the past two financial years. For the year ended December 31 2009, it posted a net loss of RM2.09 million, while in the year before, its net loss stood at RM7.26 million. For the nine months ended September 30 2010, Metronic's net loss stood at RM4.77 million.

And the amazing thing in the balance sheet was the SIZE of the trade receivables.

It's amazing because last fiscal year, total sales revenue was around 59 million only. Current ytd. 3 quarters, sales revenue is only around 49 mil.

And so I cannot comprehend why Metronic is carrying so much receivables? Who's owing them money??? Who's not paying them???? Hmmm...

Can it even be collected?

Ahem... if it can't be collected... then..... won't the receivables have to be written off as bad debts!

At 6 sen, right or wrong, the market is only valuing Metronic Global to be worth some 38 million only.


And how much is the size of the current receivables again? Just 95 million!

And then the company is losing money.

And now the Executive Chairman dumped 100 million worth of shares in the open market without giving the proper notifications!



hhc1977 said...


i really wonder how do they create the "buyer" for 100M share of a loss making company.

Moolah said...

me too!


Michael said...

good observation

xinzhang said...

Dear Moolah,

What do you think of KSL Holdings? A re-rating of its land in Iskandar Region would probable readjust its share value as well? I would appreciate if could bring us up to speed on KSL Holdings.

Moolah said...

Michael: I was just asking some simple questions.

1. How is the share doing.

2. How is the company doing.

3. How is the company's financials.

4. And why is the boss selling?

Moolah said...

Property sector is hot.

Sometimes is hard to talk reasoning when the sentiments rules.

I think you should know what I am saying here. ;)

limko said...

I will remember his name, any company that he is involved in, I will avoid like plague in future.

Anon118 said...

Forgive me if I'm wrong, but I thought KSL is having it's mall right at the centre of JB? Thanks... :)

Moolah said...

No one is never wrong in the stock market.

So no need to ask for forgiveness!

Anyway I doubt I possess such power! (though I always dream I do. :P )

solomon said...

The high receivables, apporx Rm 40 million was due to a company related to the director who sell the shares. What does it suggest? It could be extreme outcome soon?

Moolah said...

solomon: !!!!


More than the market cap!!!

solomon said...

Say, if it is a sole buyer for the 100million stock + news that the company venturing into oil and gas with potential contract. The buyer could yield instant 100per cent return or more.

By then, who cares of the chap dumping the stock?

Moolah said...

solomon: ROFLMAO!

Past history.

Tuesday April 24, 2007

Metronic Global gets approval for firms’ buy

Metronic Global Bhd, maker of building management and security systems, yesterday received shareholders' approval for its proposed acquisitions of Unilink Development Ltd and Hong Kong Broadway Electronics Co Ltd.

Unilink owns 80% in both Hangzhou Heng-Ai Electronics Co Ltd and Newtronics Hangzhou Co Ltd, while Hong Kong Broadway holds 10% in each company.

Newtronics is engaged in high volume printed circuit board assembly, cellular phone and other electronics products assembly, while Heng-Ai assembles mobile telecommunications component products.


Moolah said...


Wednesday June 27, 2007

Metronic tenders for RM600mil contracts

KUALA LUMPUR: Metronic Global Bhd is bidding for some RM600mil worth of jobs to boost its overseas revenue contribution to 60% by next year from 20% currently.

Group managing director Dr Ng Tek Che said this was a high target but he was confident of achieving it.

“We are negotiating for contracts in India and the Middle East. We also work with local property players on projects in these countries and that will help increase our chances of securing jobs there,” he said.

Ng was speaking at a media briefing yesterday on the company's proposed transfer to Bursa Malaysia main board.

Mesdaq-listed Metronic recently submitted a proposal to set up a building automation system and its related products for an airport in India, Ng said, but declined to reveal the location........

Moolah said...


Metronic to enter China telecom sector

July 13 2007

METRONIC Global Bhd, which rose two sen to RM2.55 after its transfer to the Main Board today, says its shareholding in two companies in China will enable it penetrate the fast-growing telecommunications industry in that country.

Metronic, a leading engineering and technology solutions provider previously listed on Mesdaq, said the purchase of a 12.5 per cent equity in Unilink Development Ltd and the full acquisition of HK Broadway Electronic Electronics Ltd will also position the company well in diversifying and enhancing its earnings base.

This will include revenue from manufacturing activities in addition to its current contract-based revenue from its building automation projects, the company said in a statement.

Moolah said...


Tuesday July 17, 2007

MetGlobal eyes South Africa and Middle East markets


SHAH ALAM: Metronic Global Bhd (MetGlobal) is eyeing South Africa and the Middle East as potential markets to grow its business in healthcare systems.

Group managing director Dr Ng Tek Che said parties from these countries had expressed interest in MetGlobal’s solutions in this sector but the group had yet to schedule any formal talks.

“These interested parties want us to help manage their bills and healthcare systems. The markets have huge growth potential and present good opportunities for us,” he told StarBiz recently.....

healthcare? :P

Moolah said...


Metronic clinches RM12m water treatment plant deal in China

Published: 2009/02/04

METRONIC Global Bhd (0043) has clinched a RM12 million contract to build a water treatment plant and to supply water in China for 33 years.

Under the deal with China's Lai An County Water Utility Board, Metronic will design, construct, produce, operate, maintain and sell treated drinking water in Lai'An county, Anhui province. Metronic said upon the execution of the agreement, a wholly owned special purpose company called Anhui Lai'An Metronic Water Supply Co Ltd will be set up.

"The rationale for the proposed investment is to enable Metronic Group to invest in the water concession business by tapping into the potential growth and lucrative recurrent revenue offered by the Chinese market.....

water? :P :P

33 years? :P :P

And the water project today? :P

Moolah said...


Metronic disposes of shares in Ariantec

Published: 2009/03/07

METRONIC Global Bhd, a maker of building management and security systems, has disposed of 25.27 per cent shares in Ariantec Sdn Bhd for RM9.7 million.

The group said the disposal will allow Metronic to unlock its investment in Ariantec into liquid investment.

Moolah said...


Metronic optimistic of bouncing back this year

By Zurinna Raja Adam Published: 2009/08/17

METRONIC Global Bhd (0043), a computer systems developer, which aims to make a quick return to the black in the current financial year, expects to turn its healthcare management system into its key profit contributor, after venturing regionally in two years time.

The division contributes about 5 per cent of the group's revenue. For the financial year ended December 31 2008, Metronic posted a revenue of RM51.66 million.

However, it suffered a maiden pre-tax loss of RM7.97 million since going public in 2004.

Group managing director Ng Tek Chee is optimistic of returning to the black this year due to ongoing projects as well as expected success in the contracts it is bidding for.

Metronic has 98 engineering-related projects in hand valued at RM140 million which are sustainable for the next two years.

It bid for some 70 projects valued at RM250 million so far this year. Traditionally, Metronic has a success rate of about 30 per cent of the contracts it bids for.

On its healthcare management system, the group plans to replicate its healthcare information technology system to Singapore, Indonesia and the Middle East where it has been approached by interested parties to roll out the service.

"With the spiralling cost of medical expenses, the demand for healthcare ICT (information technology and communications) outsourcing is growing. We have developed a system called MiCares that has received good feedback from the industry," said Ng in an interview recently.

Metronic holds a 51 per cent stake in Metronic iCares Sdn Bhd (MiCares) which specialises in healthcare Internet technology and online administration services....

Moolah said...


Metronic bags RM19.8m Abu Dhabi job
Written by Isabelle Francis
Wednesday, 30 December 2009 20:03

KUALA LUMPUR: METRONIC GLOBAL BHD []'s (MGB) unit Metronic Engineering Sdn Bhd has clinched a AED21.25 million (RM19.84 million) contract from Sunway Engineering Sdn Bhd.

MGB told Bursa Malaysia today that the contract covers the supply, delivery, installation, testing and commissioning of building management system, telecommunication and ELV services.

It said the ELV services include the deployment of card access, barrier gate, CCTV, and intercom systems.

MGB said the project is expected to be completed by Oct 31, 2010, and would contribute positively to its earnings for the financial year ending Dec 31, 2010.

Moolah said...

Now this company want to do.... what ah?


TK said...

Wau! An emerging conglomerate. A hidden gem.


solomon said...

A take a deep dive into it's associate, Arientec Global. If u like the current hotcake, HSBB, it is worth a second look on it. It's offering of technology that could complement HSBB presence in those ares cannot accesss to HSBB, make me thinking it is a good partner for TM, certain extent I think TM will take a stake in it. Maybe Time Engineering will also.

Guess guess only.....

ronnie said...


Once again, thank you for pointing out the wrong doers and crooks. You're the best.

God bless you and your family.

bonny b said...

Looks like too much hoohah over some cow-cake. A bad apple is a bad apple. Associating with fancy deals does not change its nature. This counter is bad news, period; O&G or otherwise, its hot-air.

Moolah said...

bonny: I had pasted several snippets of news clip on what Metronic has done over the years.

It's like everything also want to do .... but .... where's the end result?